NZD/USD to suffer a substantial drop to the 0.6703 mark – Credit Suisse

NZD/USD is close to confirm a major top. Economists at Credit Suisse continue to look for a fall to 0.6703, the 38.2% retracement of its 2020/2021 bull trend.

NZD/USD looks close to confirm a major top

“NZD/USD strength has been capped at its 55 and 200-day averages and recent high at 0.7106 and the subsequent aggressive sell-off leaves a large top threatening.”

“Beneath the 0.6880 July low should see a top confirmed to turn the core trend lower with support then seen initially at 0.6799 ahead of the 38.2% retracement of the 2020/2021 bull trend at 0.6703, which we would look to hold at first.”

“Big picture though, we would see the broader risk lower for an eventual break, with support seen next at 0.6511/0.6467.”